Michael Klein's SPAC Churchill Capital Corp IV increases proposed unit offering ahead of $1.5 billion IPO
Churchill Capital Corp IV, the fourth blank check company founded by dealmaker and former Citi executive Michael Klein, increased the proposed unit offering for its upcoming IPO on Monday. In its latest filing, the company also added Goldman Sachs and J.P. Morgan as underwriters.
The New York, NY-based company now plans to raise $1.5 billion by offering 150 million units at $10. Each unit consists of one share of common stock and one-fifth of a warrant, exercisable at $11.50. The company had previously filed to offer 100 million units at the same price. At revised deal size, Churchill Capital Corp IV will raise 50% more in proceeds than previously anticipated to command a market value of $1.9 billion.
The company is led by CEO and Chairman Michael Klein. Klein is the founder and Managing partner of strategic advisory firm M. Klein and Company, and currently serves as a director for Credit Suisse. Prior to that, he served various roles at Citi and Salomon Smith Barney from 1985 to 2008, most recently as Chairman and Co-CEO of Citi Markets and Banking. The company plans to target industries with compelling long-term growth prospects, opportunities to affect valuation improvements, attractive competitive dynamics, and consolidation opportunities. It plans to target businesses with competitive advantages, significant streams of recurring revenue, opportunity for operational improvement, attractive steady-state margins, high incremental margins, and attractive free cash flow characteristics.
Churchill Capital Corp IV's upward revision comes on the heels of Bill Ackman's Pershing Square Tontine Holdings (PSTHU), which raised $4 billion last week in the largest SPAC offering ever and is currently up 9% from IPO. The record was previously held by Klein's SPAC Churchill Capital Corp III (CCXXU; +14% from IPO), which raised $1 billion in February 2020 and recently announced an $11 billion merger agreement with healthcare management services provider MultiPlan.
Churchill Capital Corp IV was founded in 2020 and plans to list on the NYSE under the symbol CCIV.U. Citi, Goldman Sachs, and J.P. Morgan are the joint bookrunners on the deal.
The article Michael Klein's SPAC Churchill Capital Corp IV increases proposed unit offering ahead of $1.5 billion IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
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